Ep 172: Capital allocation policy: owner wage, buffers, reinvestment, investing, lifestyle
About this episode
Stuart and Mena discuss the importance of a written capital allocation policy for business owners and how to effectively manage surplus cash.
Send us Fan Mail Random distributions create random wealth outcomes. In this episode, Stuart and Mena introduce the concept most business owners don’t have, but desperately need: a written capital allocation policy. They break down how surplus cash should be intentionally directed across six competing uses: owner wage, tax, buffers, reinvestment, external investing, and lifestyle. Because if it’s not decided in advance, it gets decided emotionally. They explore structural landmines like Divis...
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